Prime Minister Narendra Modi on Friday said that the announcements made by Reserve Bank of India will "greatly enhance liquidity and improve credit supply" and would "help small businesses, MSMEs, farmers and the poor".
"Today's announcements by Reserve Bank of India will greatly enhance liquidity and improve credit supply. These steps would help our small businesses, MSMEs, farmers and the poor. It will also help all states by increasing WMA limits,Prime Minister Narendra Modi tweeted.The RBI earlier today announced a reduction in reverse repo rate by 25 basis points from 4 per cent to 3.75 per cent to facilitate bank credit flows amid the coronavirus crisis and subsequent countrywide lockdownwhich has brought economic activity to a virtual halt.
However, it kept the repo rateunchanged."The mission is to minimise the epidemiological damage in the country due to coronavirus I want to convey the RBI's resolve and the way forward," saidRBIGovernor Shaktikanta DasHe also announced conducting of targeted long-term repo operationTLTRO with Rs 50,000 crore to maintain liquidity in the system, incentivise bank credit flows and enable normal functioning of the market.<
